$NVIDIA (NVDA.US)$ The s&p 500 is currently touching the m...
The s&p 500 is currently touching the most critical support level of the upward trendlines since November 2023. If it falls below 5400 points, it will trigger a sell-off of $210 billion from hedge funds, with its trend referencing the recent sharp decline of the phlx semiconductor index. Please protect your positions and it feels like playing when it drops another 5%. Contrarian operations can also continue to profit during a major decline.
Taking nvidia as an example, the current price is $112.
Corresponding to every 100 shares.
(buy put option nvidia 240920 112P)
(sell put option nvidia 241220 115P)
(sell put option nvidia 241220 86P)
(sell covered call nvidia 240802 118C)
The benefit of doing this is to hedge against a sharp drop, while also being able to increase positions at a lower cost when the time comes. If you are experienced in advanced options strategies, consider opening a synthetic call at $100-$105, also to hold until the end of the year. If you expect sideways movement, you can implement an iron condor strategy, with a 10% stop loss set to avoid being knocked out.
Taking nvidia as an example, the current price is $112.
Corresponding to every 100 shares.
(buy put option nvidia 240920 112P)
(sell put option nvidia 241220 115P)
(sell put option nvidia 241220 86P)
(sell covered call nvidia 240802 118C)
The benefit of doing this is to hedge against a sharp drop, while also being able to increase positions at a lower cost when the time comes. If you are experienced in advanced options strategies, consider opening a synthetic call at $100-$105, also to hold until the end of the year. If you expect sideways movement, you can implement an iron condor strategy, with a 10% stop loss set to avoid being knocked out.
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b34r : It did fall below 5400 yesterday (25Jul), twice. In fact closed slightly below 5400 at 5399. 210 billion sell-off didn't trigger?
徐支歪歪 OP b34r : The CTA strategy doesn't trigger 210 billion in one go. It's progressive, but at key points, there are also algorithmic transactions that actively buy, and only when there is a long and short game can it go up and down